Discharge of Charge Legal Fees Malaysia: SRO 2023 Fourth Schedule
The legal fees for a discharge of charge in Malaysia are fixed, not scaled: RM400 for the first title and RM100 for each additional title in the same instrument, under the Fourth Schedule of SRO 2023. That sounds simple until a real file lands on the desk.
A solicitor prepares a discharge of charge covering three titles in one instrument. The fee is RM400 for the first title and RM100 for each additional title — RM600 total.
The same solicitor could prepare three separate instruments of discharge — one per title — and charge RM400 each, totalling RM1,200.
Can the solicitor choose the more expensive route?
The answer from the CPD talk: it depends on the registry. If all three titles are registered at the same land office — no, they should be discharged in one instrument. If the titles are registered at different land offices — yes, separate instruments are required, and three separate fees are justified.
This is one of the clearest practical scenarios in the Fourth Schedule, and it illustrates why even “simple” fixed-fee calculations require understanding the rules behind them.
For the broader SRO 2023 framework, read the overview of all six schedules.
What the Fourth Schedule Covers
Order 2(d) of SRO 2023: remuneration for discharges of charges or deeds of reassignment pertaining to charged or assigned properties shall be in accordance with the Fourth Schedule.
Unlike the First and Third Schedules, the Fourth Schedule uses fixed fees rather than percentage-based scale fees. The amounts are modest — but the rules governing who earns the fee, and how it is split between solicitors, contain important practical detail.
Discharge of Charge Legal Fees: The Fourth Schedule Fee Table
Discharge of Charge
| Item | Fee |
|---|---|
| First title or charge | RM400 |
| Each additional title or charge in the same instrument | RM100 |
Deed of Reassignment
| Item | Fee |
|---|---|
| First property | RM500 |
| Each additional property in the same deed | RM100 |
| If the deed of reassignment includes a revocation of power of attorney | Additional RM200 |
No discount permitted. The Fourth Schedule is not subject to Order 5’s 25% discount rule.
The Three Rules
Rule 1 — Conduct and completion. The fee is only payable to the solicitor having conduct of and completing the transaction. This means the solicitor who merely drafts the discharge document but does not see it through to registration cannot claim the full fee — the fee attaches to the solicitor who completes the process.
Rule 2 — The 50/50 split. This rule addresses the common practical situation where two solicitors are involved in a discharge:
(a) If the discharge or reassignment is prepared by the financier’s solicitor, and the signature of the attorney for the financier is attested by the financier’s solicitor, and the instrument is then forwarded to the borrower’s solicitor to complete the transaction — the fee is split: 50% to the financier’s solicitor and 50% to the borrower’s solicitor.
(b) If the discharge or reassignment is prepared by the borrower’s solicitor and forwarded to the financier’s solicitor only for attestation — the financier’s solicitor may only charge the attestation fee under the Fifth Schedule, and the borrower’s solicitor receives the full applicable fee.
The practical implication: which solicitor prepares the discharge document determines the fee allocation. Financier’s solicitor prepares it → 50/50. Borrower’s solicitor prepares it → full fee to borrower’s solicitor, attestation fee only to financier’s solicitor.
Rule 3 — Additional documents and special circumstances.
(a) Where a discharge or reassignment requires the solicitor to prepare any documents separately that are chargeable under the Fifth Schedule, those Fifth Schedule fees apply in addition to the Fourth Schedule fee. This covers ancillary documents like statutory declarations or applications that accompany the discharge.
(b) Where a reassignment involves a developer under liquidation or in receivership, the solicitor may charge additional fees in accordance with Rule 1 of the Sixth Schedule. This recognises the additional complexity — dealing with liquidators, obtaining court orders, and navigating the insolvency regime — that goes well beyond a standard reassignment.
The Multi-Title Question
Decode 24 from the CPD talk raised a comparison that catches people out:
When preparing a discharge of charge of more than one title in the same instrument, the solicitor charges RM100 for each additional title. This is clear from the fee table.
When preparing a charge of more than one title in the same instrument of charge, can the solicitor charge RM100 for each additional title?
No. The Third Schedule fees are based on the amount secured or financed — not the number of titles. A charge over ten titles securing a RM500,000 loan attracts the same Third Schedule fee as a charge over one title securing RM500,000. The per-title increment is a Fourth Schedule concept, not a Third Schedule one.
Acting for Another Party — The Fourth Schedule Exception
Under Order 7 of SRO 2023, a solicitor shall not charge remuneration to a party if the solicitor also acts for another party in the same transaction. But Order 7(2) creates an exception for the Fourth and Fifth Schedules: a solicitor may charge remuneration if the solicitor has prepared, filed, or witnessed documents under these schedules for another party in the same transaction, provided there is no conflict of interest.
The practical scenario from the CPD talk (Decode 12): a solicitor acting for the purchaser in a sub-sale where the vendor is not represented. The vendor’s property is charged to a bank. Can the purchaser’s solicitor act in the discharge of the vendor’s charge?
Yes. The discharge is a Fourth Schedule document. In a discharge, the solicitor acts for the bank, not the vendor. There is no conflict of interest with the purchaser. The exception under Order 7(2) applies.
This is a common arrangement in Malaysian sub-sales and one that the SRO explicitly permits.
Tracking discharge and redemption across multiple bank panels?
The fee split between financier's and borrower's solicitor, the per-title increment, and the Fifth Schedule add-ons all need to appear correctly on the quotation. Tell us how many panels you sit on and we will map the workflow.
Frequently Asked Questions About Discharge of Charge Fees
How much are the legal fees for a discharge of charge in Malaysia?
RM400 for the first title or charge, plus RM100 for each additional title or charge included in the same instrument, under the Fourth Schedule of SRO 2023. This is the solicitor's fee only — the land office registration fee, search fees and other disbursements are charged separately and must be itemised on the bill.
Can a lawyer give a discount on discharge of charge fees?
No. Order 5 of SRO 2023 allows a discount of up to 25% only on Table A of the First and Third Schedules. Fourth Schedule fees are fixed and cannot be discounted.
What is the difference between a discharge of charge and a deed of reassignment?
A discharge of charge releases a registered charge over land that has an individual or strata title, and is registered at the land office. A deed of reassignment is used where the property was financed by way of assignment because the individual or strata title had not yet been issued — the financier reassigns its rights under the sale and purchase agreement back to the borrower. The Fourth Schedule fixes RM400 for a discharge and RM500 for a reassignment, plus RM200 if the reassignment includes a revocation of power of attorney.
Who pays the discharge of charge legal fees — the bank or the borrower?
In practice the borrower who is redeeming the loan bears the cost. What the Fourth Schedule regulates is how the fee is shared between the solicitors involved: if the financier's solicitor prepares the discharge and the borrower's solicitor completes it, the fee is split 50/50; if the borrower's solicitor prepares it, the borrower's solicitor keeps the full fee and the financier's solicitor charges only the Fifth Schedule attestation fee.
Can several titles be discharged in one instrument?
Yes, if they are registered at the same land office — and they should be, at RM400 for the first title and RM100 for each additional title. Titles registered at different land offices need separate instruments, and each instrument attracts its own RM400 fee.
The Rules Referenced in This Article
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